Last Updated on February 12, 2020 by Chris Stang
Financial Health Score
Our Financial Health Score is designed to specifically measure the financial health of developing biotechnology companies. As we looked around at other scoring systems or ranks, we were constantly confronted with the realization that these scores were not applicable to biotechnology. How and why should the same score be used to assess the financial health of developing mid-cap biotechnology companies as mega-cap technology companies? They should not! This is why we diligently created this proprietary measure of financial health. Our proprietary score incorporates important considerations for clinical stage biotechnology companies such as cash runway, debt, and current cash position, among other inputs relevant to developing biotechnology companies.
Our scale ranges from negative five up to a score of twenty-four. Interpretation is as follows:
- Score of 15.1 to 24 [A]: These companies are the cream of the crop from a financial standpoint based on our proprietary score. There is a strong financial set-up for these companies to develop their clinical assets.
- Score of 10.2 to 15 [B]: These companies have very favorable financial scores. There is limited concern from a financial standpoint.
- Score of 5.1 to 10 [C]: Companies in this tier have an average financial score. Companies are not expected to be as high risk as those with lower scores, but have characteristics that warrant careful evaluation.
- Score of -5 to 5 [D]: The lowest tier on our financial score. These companies have a concerning financial situation which warrants careful evaluation of risks.
Our Pipeline Score objectively measures a biotechnology company’s clinical pipeline. Taking into account the number of candidates, the number of indications, the stage of development, and rights to the candidates in key markets, our score will range from -5 to 24, with a higher score representing a stronger score. Companies with lower scores may be due to a limited number of candidate, limited number of indications, or lack of rights to future revenue generated (licensing deals).
|Company Ticker||Company Name||Financial Score||Pipeline Score|
|AXGT||Axovant Gene Therapies||2.67||2.77|
|FPRX||Five Prime Therapeutics||13.32||3.81|
|INO||Inovio Pharmaceuticals||7.17||Coming Soon|
|LCTX||Lineage Cell Therapeutics||9.39||1.30|
|LJPC||La Jolla Pharmaceutical Company||4.87||-0.70|
|NDRA||ENDRA Life Sciences||1.59||^|
|NGM||NGM Biopharmaceuticals||Coming Soon||1.43|
^The pipeline score was developed for assessment of drug candidates and is not applicable to diagnostic, surgical companies, or fully commercialized companies.